Step 3. Add to this a salary normal for an owner- operator of the business. This combined figure provides a reasonable estimate of the income the buyer can earn elsewhere with the investment and effort involved in working in the business. Step 4. Determine the average annual net earnings of the business ( net profit before subtracting owner’s salary) over the past few years. This is before income taxes, to make it comparable with earnings from other sources or by individuals in different tax brackets. ( The tax implications of alternative investments should be carefully considered.) This trend of earnings is a key factor. Have they been rising steadily, falling steadily, remaining constant, or fluctuating widely? The earnings figure should be adjusted to reflect these trends.